Gauteng Business Studies Grade 12 Term 1 Notes PDF

# Business Studies Grade 12 Term One Revised Chapter 4 - Notes on Creative Thinking and Problem Solving ## Table of Contents | Topics | PAGES | |---|---| | Exam guidelines for creative thinking and problem solving | 2 | | Terms and definitions | 2 | | Differences between problem solving and decis...

# Business Studies Grade 12 Term One Revised Chapter 4 - Notes on Creative Thinking and Problem Solving ## Table of Contents | Topics | PAGES | |---|---| | Exam guidelines for creative thinking and problem solving | 2 | | Terms and definitions | 2 | | Differences between problem solving and decision making | 3 | | Problem solving steps | 3 | | Application of problem solving steps | 3-4 | | Problem solving techniques | 4 | | Application of the problem solving techniques | 5-6 | | Impact of problem solving techniques | 6-8 | | Meaning of creative thinking | 8 | | Advantages/benefits of creative thinking | 8-9 | | Ways in which businesses can create an environment that promotes creative thinking.| 9 | This chapter consists of 9 pages. ## Content Details for Teaching, Learning and Assessment Purposes Refer to page 28 and 29 of the 2020 exam guidelines ### Problem-Solving Learners must be able to: * Define/Elaborate on the meaning of problem-solving and decision making. * Explain/Differentiate/Distinguish between problem-solving and decision making. * Identify/Name/Outline/Explain/Discuss the problem solving steps. * Apply the problem-solving steps from given scenarios/case studies. * Identify/Name the following problem solving techniques from given scenarios/statements: * Delphi technique * Force field analysis * Brainstorming * Nominal group technique * Explain/Advise businesses on how they can apply the above-mentioned problem-solving techniques to solve complex business problems. * Discuss/Evaluate/Analyse the impact (positives/advantage and/or negatives disadvantages) of the above-mentioned problem-solving techniques. ### Creative Thinking * Define/Elaborate on the meaning of creative thinking. * Explain the benefits/advantages of creative thinking in the workplace. * Explain/Recommend ways businesses can create an environment that promotes creative thinking. ## Terms and Definitions | Term | Definition | |---|---| | Creative | To be original, inventive or resourceful. | | Generate | To produce or create. | | Creativity/Creative thinking | The ability to think of original, varied new ideas or new approaches | | Decision-making | Process of analysing a situation to identify strategies to bring about change. | | Problem | Experiencing uncertainty or difficulty in achieving what we want to achieve. | | Problem-solving | Gathering facts that include problem findings and problem shaping. | | Problem-solving techniques | Various problem solving techniques which businesses used to solve business related problems. | # Problem Solving ## Meaning of problem solving * It is the process of analysing a situation to identify strategies that can be used to change the situation. Problem solving requires creative thinking. * Problem solving is a mental process that involves problem finding, which is the ability to identify the problem. * It also involves problem shaping, which is the ability to break-down the problem in such a way that a clear solution can be found. ## Meaning of decision making * Decision making is a choice made by using one's judgement. * It is also aimed at finding a solution to a problem by choosing a best solution or course of action. ## Differences between problem solving and decision making | DECISION MAKING | PROBLEM SOLVING | |---|---| | -It is often done by one person/a member of senior management who makes it authoritarian. | -Problems can be solved by a group/ team or an individual team member. | | -Various alternatives are considered before deciding on the best one. | -Alternative solutions are generated/ identified and critically evaluated. | | -It is part of the problem solving cycle as decisions need to be taken in each step. | -Process of analysing a situation to identify strategies to bring about change. | ## Problem solving steps * Identify the problem. * Define the problem. * Identify possible solutions to the problem. * Select the most appropriate alternative. * Develop an action plan. * Implement the suggested solution/action plan. * Monitor the implementation of the solution/action plan. * Evaluate the implemented solution. * Formulate strategy * Implement strategy * Evaluate strategy **NOTE:** Steps can be in any order ## Application/Discussion of problem solving steps ### Identify the problem * Acknowledge that there is a problem * Identify the exact problem * Break down the problem into smaller parts that are easier solve separately ### Define the problem * Name the problem by stating exactly what the problem is. * Find different ways of defining the problem. * Define the possible causes of the problem. * The nature of the problem must be precise. * Gather as much information as possible to establish the cause of the problem. ### Identify alternative solutions * Identify all different possible solutions. * Use creative thinking strategies to generate a wide range of solutions. * Focus on generating as many ways as possible through using creative thinking. * Collect as many ideas as possible and find the best idea/decide on one strategy to follow. ### Evaluate alternative solutions * Use critical evaluation and analytical skills to evaluate each solution. * Consider the advantages and disadvantages of each alternative solution. ### Choose the best solution * Set criteria for the best solution, in terms of aspects such as time/cost/risk involved * Identify which solution will be used * The best solution should match the size and the resources of the business. * If the solution is not appropriate, the business should go back to defining the problem. ### Formulate/Develop an action plan/strategy * Arrange the necessary resources and delegate tasks. * Establish a time line for implementation and set deadlines. ### Implement the action plan * Carry out the planned actions/solution. * Communicate delegated tasks/deadlines to employees. ### Evaluate the solution/action plan * Assess whether the problem has been solved partially or entirely. * Monitor/test the solution/action plan/strategy continuously. * If problems emerge, they must recognise and re-formulate the problem for improved solutions in the future. ## Problem solving techniques * Delphi technique * Force field analysis * Brainstorming * Nominal group technique **NOTE:** You only need to focus on the above mentioned problem solving techniques ## Application of the problem solving techniques ### Application of the Delphi technique * Businesses must invite a panel of experts to research the complaints from customers. * Experts do not have to be in one place and will be contacted individually. * Design a questionnaire consisting of questions on how to improve the quality of their products and distribute it to the panel members/experts. * Request the panel to individually respond to the questionnaire/suggest improvements to the products and return it to the business * Summarise the responses from the experts in a feedback report. * Send the feedback report and a second set of questions/questionnaire based on the feedback report to the panel members. * Request panel members to provide further input/ideas on how to improve the quality of products after they have studied the results/documentation. * Distribute a third questionnaire based on previous feedback from the second round. * Prepare a final summary/feedback report with all the methods to improve the quality of the business's products * The business should choose the best solution/proposal after reaching consensus. ### Application of Force-Field Analysis * Describe the current situation/problem and the desired situation. * List all driving/pros and restraining/cons forces that will support and resist change. * Allocate a score to each force using a numerical scale, where 1 is weak and 5 is strong. * Weigh up the positives and negatives then decide if the project is viable. * Choose the force with the highest score as the solution. * If the project is viable, find ways to increase the forces for change. * Identify priorities and develop an action plan. ### Application of brainstorming * State/Define the business problem clearly, so that all participants/stake-holders understand the problem. * Members state possible causes of the business problems. * Set a time limit for each brainstorming session. * Record/Write ideas down, where all participants can see it./Ideas may also be shared online during an E-brainstorming session. * Use each suggestion, to inspire new thoughts/ideas. * Do not judge/criticise/discuss the ideas, so that many ideas could be generated as quickly as possible. * All members of the group randomly make suggestions. * The group rates ideas according to its usefulness/success/difficulty/cost to implement. * The group evaluates all ideas, and combines similar ones/draw up a refined list. * Discuss a plan of action on how to implement the best ideas. ### Application of nominal-group technique * Encourage group to clearly define the problem/to improve the quality of their products due to various complaints so that all the small groups can work on the same problem. * The business must divide the employees into smaller groups. * Request each employee to silently brainstorm /generate many ideas on his/her own, on how the quality of the product can be improved and to write it down. * Each employee in the small group has the opportunity to give one of his/her idea/solution with a short explanation. * Appoint one employee to write the ideas/solutions on a large sheet of paper/ capture solutions electronically on computer for all to see. * Allow each employee to give a second solution until all possible solutions have been recorded. * Encourage employees to ask clarity seeking questions. * Discourage criticism of ideas/solutions as this may prevent others from giving their solutions. * The business must eliminate ideas that are duplicated/ similar. * Each employee must read through all the suggestions and anonymously rate them giving the highest points for the best solution. * Collect the ratings and calculate total points. * Small groups must present one solution to the large group that was deemed best according to the scores/votes in their small groups. ## Impact of problem solving techniques ### Impact of the Delphi technique #### Positives/Advantages * Businesses may use a group of experts without bringing them together. * The experts will give the business clear ideas/solutions on how to improve on productivity/profitability. * Information received from experts can be used to solve complex business problems. * Experts may give honest/credible opinions as they do not have a direct/personal interest in the business. * Conflict may be avoided especially if all employees are knowledgeable and well qualified. * Dominating employees may not take over the process as they do not form part of the problem solving process. * It reduces noise levels in an office environment since there is no group discussion. #### Negatives/Disadvantages * It is an expensive technique to use due to high administrative costs. * Not all experts are willing/interested to give feedback/complete questionnaires. * Some experts might not have an in-depth knowledge of certain topics. * Experts' suggestions may not be considered by some employees so consensus may not be reached. * May be time consuming/complicated to analyse data received from experts. ### Impact of the Force-Field Analysis #### Positives/Advantages * Employees feel included and understood. * Employees develop and grow with the business. * It provides a visual summary of all the various factors supporting and opposing a particular idea. * Informed decisions can be made as forces for and against are critically evaluated. * Enables businesses to strengthen the driving forces and weaken the restraining forces. * Businesses are able to have an idea of the timeline required and the requirements of additional resources. #### Negatives/Disadvantages * Requires the participation of all business units. * It is time consuming since the business must stabilise before more changes can be made. * The analysis developed is entirely dependent upon the skill level and knowledge of the group working on the analysis. ### The impact of brainstorming #### Positives/Advantages * People get ideas from others and build on them. * Stimulates creative thinking in the workplace. * Better solutions are developed through collective contributions. * Combinations of ideas/improvements can be chosen after all the ideas have been written down. * Employees are motivated as they are allowed to contribute to problem solving. #### Negatives/Disadvantages * Some team members may dominate discussion. * Discussion may result in conflict due to differences in opinion. * Fear of criticism may prevent full participation in brainstorming sessions. * It may lead to 'group think'/some individuals may not give their opinions . * Brainstorming is time consuming as all stakeholders/employees may generate too many ideas which can delay decision making. ### The impact of the Nominal group technique #### Positives/Advantages * It provides time to think about the question in silence before responding. * Voting on the ideas is anonymous and may be more reliable/honest. * Strong technique for preventing conformity to group pressure. * Each team member/director has a chance to participate without interference from other team members. * Everyone in the group is given an opportunity to contribute to the discussion, while avoiding the likelihood of one person dominating the group process. * Enables the group to generate and clarifies a large amount of ideas quickly, and democratically prioritises them. * It encourages participants to confront issues through constructive problem solving #### Negatives/Disadvantages * Small groups limit participation and are pre-selected. * It is time consuming, as each member must make a presentation. * Suggestions may not be as creative as when a group throws ideas around. * Good ideas can be voted out because its potential cannot be developed further. * It minimises discussion, and thus does not allow the full development of ideas. * Ideas/Inputs made by members may not converge and cannot lead to the same Solution (s). * It is hard to implement it effectively with large groups unless very carefully planned beforehand. * Requires extended advance preparation, which means that it cannot be a spontaneous technique. # Creative Thinking ## Meaning of creative thinking * Creative thinking is the ability to think of original and innovative ideas. * It focuses on exploring ideas/generating possibilities and looking for many answers. ## Advantages/Benefits of creative thinking in the workplace * Better/Unique/Unconventional ideas/solutions are generated. * Complex business problems may be solved. * Improves motivation amongst staff members. * Management/employees may keep up with fast changing technology. * Creativity may lead to new inventions which improves the general standard of living. * May give the business a competitive advantage if unusual/unique solutions/ideas/strategies are implemented. * Productivity increases as management/employees may quickly generate multiple ideas which utilises time and money more effectively. * Managers/Employees have more confidence as they can live up to their full potential. * Managers will be better leaders as they will be able to handle/manage change(s) positively and creatively. * Managers/Employees can develop a completely new outlook, which may be applied to any task(s) they may do. * Leads to more positive attitudes as managers/employees feel that they have contributed towards problem solving. * Managers/Employees have a feeling of great accomplishment and they will not resist/obstruct the process once they solved a problem/contributed towards the success of the business. * Stimulates initiative from employees/managers, as they are continuously pushed out of their comfort zone. ## Ways in which a business can create an environment that stimulates/promote creative thinking * Encourage alternative ways of working/doing things. * Encourage staff to come up with new ideas/opinions/solutions. * Respond enthusiastically to all ideas and never let anyone feel less important. * Place suggestion boxes around the workplace and keep communication channels open for new ideas. * Emphasise the importance of creative thinking to ensure that all staff know that management want to hear their ideas. * Make time for brainstorming sessions to generate new ideas, e.g. regular workshops/generate more ideas/build on one another's ideas. * Train staff in innovative techniques/creative problem solving skills/mind-mapping/lateral thinking. * Encourage job swops within the organisation/studying how other businesses are doing things.